Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 1RQ
To determine
Identify the parts which involve the evaluation of risk.
Expert Solution & Answer
Explanation of Solution
Identify the parts which involve the evaluation of risk as follows:
Eight parts of the planning phase of an audit are,
- 1. Accept client and perform initial planning,
- 2. Understand the client’s business and industry,
- 3. Perform preliminary analytical procedures,
- 4. Set preliminary judgment of materiality and performance materiality,
- 5. Identify significant risks due to fraud or error,
- 6. Assess inherent risk,
- 7. Understand internal control and assess control risk, and
- 8. Finalize overall audit strategy and audit plan.
The evaluation of risk is an explicit component of 5th (significant risk) 6th (inherent risk) and 7th (control risk) parts.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
In which stage of audit the audit program will be created ?
a.
Fieldwork
b.
Reporting
c.
Planning
d.
Followup
1. What are the objectives of Audit Planning?
2. Explain SIX (6) planning procedures.
Chapter 8 introduced the eight parts of the planning phase of anaudit. Which part is the evaluation of materiality and risk?
Chapter 9 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Provide two examples of factors that might...Ch. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQ
Ch. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - Prob. 14RQCh. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - Prob. 20RQCh. 9 - Prob. 21RQCh. 9 - Prob. 22RQCh. 9 - Prob. 23RQCh. 9 - Prob. 24RQCh. 9 - Prob. 25.1MCQCh. 9 - Prob. 25.2MCQCh. 9 - Prob. 25.3MCQCh. 9 - Prob. 26.1MCQCh. 9 - Prob. 26.2MCQCh. 9 - Prob. 26.3MCQCh. 9 - Prob. 27.1MCQCh. 9 - Prob. 27.2MCQCh. 9 - Prob. 27.3MCQCh. 9 - Prob. 28.1MCQCh. 9 - Prob. 28.2MCQCh. 9 - Prob. 28.3MCQCh. 9 - Prob. 29DQPCh. 9 - This problem requires you to access PCAOB Auditing...Ch. 9 - Prob. 31DQPCh. 9 - Prob. 32DQPCh. 9 - Prob. 33DQPCh. 9 - Prob. 34DQPCh. 9 - Prob. 35DQPCh. 9 - Prob. 36DQPCh. 9 - Prob. 37DQPCh. 9 - Prob. 38C
Knowledge Booster
Similar questions
- Which of the following audit is a continuous process ? Risk Management Internal Audit Balance Sheet Preparation External Auditarrow_forward6. During the planning stage, an audit planning memo will consist of these four main steps: i) Risk Assessment ii) Approach iii) Materiality iv) Sampling v) Procedures Question 6 options: a) ii, iii, iv & v b) i, ii, iii & v c) i, ii, iii & iv d) All of the abovearrow_forwardd) Name the four types of tests auditors normally perform in an audit after risk assessment is done.arrow_forward
- Which of the following is not one of the five key steps within the ERM process? a. Risk response b. Risk acceptance c. Risk monitoring d. Risk identificationarrow_forward1. Why do you need to make pre - engagement activities before making an actual audit?arrow_forwardDefine audit risk and describe how it can be broken down into the three separate components of the audit risk model to help assess and respond to such risks during the audit planning process.arrow_forward
- 3.What are the audit procedures for subsequent events and give examplesarrow_forwardWhat are the six stages of an audit?arrow_forwardABOUT AUDITING The process of selecting and developing policies and procedures to help mitigate risks to an acceptable level is part of which component in the COSO Framework? a. Control environment b. Risk assessment c. Control activities d. Monitoringarrow_forward
- What are the stages of an audit from beginning to end.arrow_forwardIdentify the eight major steps in planning auditsarrow_forwardWhich of the following is the on-going evaluation of the implementation and operation of the five various components of internal audit? a. Monitoring Activities b. Control Activities c. Control Environment d. Risk Assessmenarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning